Legal Insider Trading
About this course
If you’re like most people, when you hear the term “insider trading” you probably think of people exchanging information in a dimly lit parking garage. Or possibly an image comes to mind of a guy in an expensive suit being led out of a courtroom in handcuffs...
But while illegal insider trading cases sometimes grab headlines, in reality, the vast majority of insider trading is perfectly legal. Every day around the world, thousands of corporate insiders buy and sell shares of the companies they work for or own stakes in. Most of these trades are neither unlawful or interesting. But a few insider transactions are meaningful -- that is if you’re an investor looking for a profitable edge. Out of the many trades disclosed by corporate insiders, a few will precede sizeable moves in the underlying stock. For investors who know what to look for, following and copying the trades of insiders can be very profitable.
What this Legal Insider Trading Course will help you learn:
- The difference between illegal and legal insider trading
- Why insider buying is more predictive than insider selling
- Which corporate insiders -- officers, directors and large holders -- are most profitable to follow
- What form 4 filings are and where they’re available
- Why insider trading at smaller companies usually is most profitable
- Which rare insider trading signal is probably the most predictive
- What time frame is best when mimicking insider purchases
- Ideas for developing a portfolio strategy based on following legal insider trades
The transactions disclosed by corporate insiders often predict big price moves in the shares of stocks they trade
To make money following legal insider trading, one needs to zero-in on a few predictive kinds of insider transactions. In this course, we’ll learn how to filter through the avalanche of insider reports and discover insider activity that can be turned into money-making trading strategies.
The blurry grey line separating illegal and legal insider trading
Securities regulators around the world restrict trading of public companies based on inside information. The reason is simple: Corporate insiders -- usually defined as chief executives, directors and large shareholders -- often have access to information about their companies that is unavailable to other investors. This nonpublic information could be used for personal profits at the expense of shareholders. Because fair markets are important to public confidence in securities markets, governments strive to ensure markets are seen as fair by investors. Nothing erodes confidence in financial markets more than when traders feel markets are rigged in favor of insiders.
Legal Insider Trading
We believe in a world where people manage their own money. That’s why we have been building one of the largest online learning platforms for you to learn from the best traders, investors and personal finance gurus out there. Learning to trade, invest and manage your money is a serious task, at the same time it’s fun and much easier when someone shares their knowledge with you and brings you to a level where you can make your own experiences and learn by being active in the markets yourself while speaking with others in a community.